The Ordinal Scale Represents a Higher Level of Measurement Than

question 60

Multiple Choice

The ordinal scale represents a higher level of measurement than the nominal scale in that

• A) the assigned numerals serve to identify the objects.
• B) the magnitude of the differences in the objects is shown.
• C) the assigned numerals represent the order as well as identifying the object.
• D) it has a natural zero.
• E) it has an arbitrary zero.

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Definitions:

Capital Rationing

The process of limiting the number of new projects or investments undertaken by a company due to budget constraints.

Capital Investment Proposals

Plans or suggestions put forward for consideration regarding the investment of capital into long-term assets or projects expected to provide benefits over multiple periods.

Time Value of Money Concept

The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Dollar Today

The current value of the US dollar against a basket of foreign currencies, affecting import and export prices.